Global Trustee and Fiduciary Services Bite-Sized Issue 12 2025

13 QUICK LINKS COSTS & CHARGES CRYPTOASSETS FINTECH FSB IOSCO OPERATIONAL RESILIENCE SAVINGS AND INVESTMENT UNION SUSTAINABLE FINANCE/ESG T+1 ASIA PACIFIC EUROPE NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 12 | 2025 • Transparency as a lever for impact: – The revised Standard sets clear expectations on how progress against targets should be measured and disclosed, driving continuous improvement and accountability to help companies remain aligned with their net-zero ambition. The public consultation ran from 6 November – 12 December 2025. Link to the Consultation here NGFS Issues Declaration on the Economic Cost of Climate Inaction at COP30 On 5 November 2025, the NGFS released its Declaration on the Economic Cost of Climate Inaction aligned with the occasion of the 30th United Nations Climate Change Conference (COP30) in Belém, Brazil. The NGFS says the declaration underscores the mounting macroeconomic and financial risks of delayed climate action and reaffirms its commitment to supporting a well-managed transition to a low-carbon economy. In its Declaration, the NGFS: • Highlights the rising economic costs of climate inaction , with material economic and financial risks that have implications for the core mandates of central banks and financial supervisors. • Warns that delayed action could halve the effectiveness of transition efforts , with transition costs rising from 0.5% to 1.3% of global GDP by 2030 in the case of a three-year delay. • Stresses that climate-related shocks could trigger global spillovers , by disrupting food systems, energy markets and supply chains, resulting in macro-financial instability and disproportionately impacting vulnerable economies. • Calls for financial institutions to factor climate and nature-related risks into their strategies and operations , through scenario analysis, climate disclosure standards and transition planning. The NGFS says the declaration draws on recent NGFS publications, which provide tools for central banks and financial supervisors to integrate climate and nature-related risks into their strategies. Link to the Declaration here The EBA Publishes its Final Guidelines on Environmental Scenario Analysis On 5 November 2025, the European Banking Authority (EBA) published its final Guidelines on environmental scenario analysis, which complement the EBA Guidelines on the management of ESG risks by specifying supervisory expectations regarding how institutions should conduct environmental scenario analysis. The EBA says the Guidelines aim to strengthen institutions’ ability to use forward-looking approaches to the assessment and management of environmental risks. The Guidelines are built around two complementary pillars: • Integration of environmental risks into institutions’ existing stress-testing frameworks, enabling banks to assess the short-term financial impacts of environmental risks and ensure that capital and liquidity levels remain adequate; and • Resilience analysis, looking further ahead to evaluate the medium- to long-term implications of environmental risks and opportunities for banks’ business models, strategies, and risk profiles. The EBA says that, together, these two elements will help institutions to embed environmental risk considerations more effectively into their overall risk management and strategic planning processes. The EBA also says that they provide a common reference point to support consistent, forward-looking management of environmental risks across the EU banking sector. The Guidelines will apply from 1 January 2027. Link to the Guidelines here